Moody's Rating for IBM

RATING

Aa3

Rating

Aa3

Rating Update

AFF

Date of Rating

3/30/2016

Rating Office

USA

MOODY'S ANALYTICS RISK SCORE

6

Moody’s Daily Credit Risk Score is a 1-10 score of a company’s credit risk, based on an analysis of the firm’s balance sheet and inputs from the stock market. The score provides a forward-looking, one-year measure of credit risk, allowing investors to make better decisions and streamline their work ow. Updated daily, it takes into account day-to-day movements in market value compared to a company’s liability structure.

International Business Machines Corp. is an information technology company, which provides integrated solutions that leverage information technology and knowledge of business processes. It operates through the following segments: Cognitive Solutions, Global Business Services, Technology Services & Cloud Platforms, Systems, and Global Financing. The Cognitive Solutions segment comprises a portfolio of capabilities that help IBM's clients to identify actionable insights and inform decision making for competitive advantage. It includes Watson, a cognitive computing platform that has the ability to interact in natural language, process amounts of big data, and learn from interactions with people and computers. This segment consists of Solutions Software, which provides the basis for many of the company's strategic areas including analytics, security and social; and Transaction Processing Software, which includes software that primarily runs mission-critical systems in industries such as banking, airlines and retail. The Global Business Services segment provides clients with consulting, application management and global process services. The Technology Services & Cloud Platforms segment provides IT infrastructure services creating business value for clients through integrated services that incorporate intellectual property within its global delivery model.

IBM Stock Price History by Markets Insider

International Business Machines Corp, or IBM, traces its history back over a century to the 1880s, when the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Company were consolidated into a single entity.

In 1911, a prospectus was filed for the Computing-Tabulating-Recording Company, incorporated in New York. Five years later, in 1916, the Computing Tabulating Recording Corporation would make its debut on Wall Street at the New York Stock Exchange: NYSE IBM.

Today’s name, IBM, was first coined in a 1917 ad for CTR which said the conglomerate were “makers of International Business Machines,” which reportedly became its shorthand moniker by 1924.

In the early 1900s, demand for time-cards and accounting machines helped drive IBM stock from $54 to a peak of $216 before the crash that triggered the Great Depression. In 1932, IBM stock price sunk to $9.125, adjusted for subsequent splits.

Under the leadership of Thomas J, Watson Sr. (whose name still lives on in IBM’s quantum computing program), IBM invested heavily in research. This propelled IBM from $9 million in revenue growth in the early 1900s to $892 million when Watson passed away in 1956. His son, Thomas Watson Jr. took over following his death.

IBM stock price responded in kind, steadily growing throughout the 20th century until the 1980’s. Thanks to stock splits, a single share of IBM stock purchased in 1924 would now have multiplied to over 3,000 today and thousands of dollars in dividends.

When computing came into the business scene in the late 20th century, IBM played an integral role in the ecosystem. Eventually, though, powerhouses like Apple, Microsoft, Intel, Hewlett-Packard and other would win out. Instead, CEO Louis Gerstner focused IBM’s efforts on enterprise IT services.

Even at the height of the great recession of 2008, IBM stock price largely survived where many other stocks saw some of their lowest prices in history and even bankruptcy. IBM stock price bottomed out near $80 in December 2008, near similar troughs from 2002 and IBM stock price through much of the 2000’s.

IBM stock price would continue to rise out of the recession with the bull market, with Ginni Rometty taking over as CEO in 2012. IBM stock price reached its all-time record price on March 15, 2013, when the stock hit $215.90 during trading. Revenue growth, better than expected earnings results and financial information as well as product innovations in areas such as cloud computing played a role during this time.

As of late 2017, IBM's quarter of revenue had fallen for 22 straight quarters. IBM reports and expected earnings results have now made Wall Street happy. While shares of IBM are still above their post-peak low of $120, set shortly after the record in 2013, they have yet to climb above that peak in the more than four years since.